Q&As

A company proposes to enter into a legal charge. The charge will be executed by the company acting by a director in the presence of a witness. If an employee of that company witnesses the director’s signature, will the company’s execution of the charge be valid?

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Produced in partnership with Carl Fain of Tanfield Chambers
Published on LexisPSL on 07/03/2018

The following Property Q&A Produced in partnership with Carl Fain of Tanfield Chambers provides comprehensive and up to date legal information covering:

  • A company proposes to enter into a legal charge. The charge will be executed by the company acting by a director in the presence of a witness. If an employee of that company witnesses the director’s signature, will the company’s execution of the charge be valid?

This Q&A assumes the document is executed after 6 April 2008.

For a company to execute a deed, it must comply with section 46 of the Companies Act 2006 (CA 2006) and thus be duly executed by the company in accordance with CA 2006, s 44 and delivered as a deed.

By CA 2006, s 44(2), the

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